- Online retail giant Amazon has agreed to work with the company Buy Now, Pay Later Affirm to offer some of its online customers the option to pay for goods in installments, Affirm said in a press release on Friday. For now, they’re testing the new service with a subset of Amazon customers, but in the coming months, they plan to make it more widely available to the retailer’s customers..
- Only “selected” Amazon customers with total purchases of at least $ 50 will be able to use the Affirm “pay over time” service, which allows consumers to make monthly payments on their total tab after accepting the payments. financing conditions at the fund. A spokesperson for Affirm declined to comment on the terms, but the company’s website says it charges simple interest, not compound interest, at no “charge of any kind.”
- In a statement, Amazon confirmed the new link and said, “Amazon is always looking to add flexible payment options, and Affirm is doing it by offering transparent payment over time solutions that customers can choose from based on their needs, without delay. or hidden charges. “
The new link comes as Amazon explores alternatives to the traditional credit card payment system, including a recent announcement that it will add a Visa credit card supplement shopping in Singapore starting next month because of “high cost of payments. ”
Seattle-based Amazon suggested extending the supplement for payments with Visa, the largest card network company in the United States.
Amazon partners with San Francisco-based Affirm as other companies build relationships with later installment finance companies.
Digital payments firm Square agreed earlier this month to acquire the Melbourne, Australia-based company buy now pay later company AfterPay for $ 29 billion. Square, which was seeks to build its own banking services, agreed to buy AfterPay at around 30% premium, highlighting the growing popularity of BNPL around the world services to consumers seeking new forms of credit.
This consumption trend is consistent with the increase Interest of the US Congress, and the responsiveness of the private sector, by making more financial services, such as loan services, available at lower cost to people who might not have a bank account or access to credit cards.
“By partnering with Amazon, we are bringing the transparency, predictability and affordability that Affirm offers today to the millions of people who buy from Amazon.com in the United States,” said Eric Morse, senior vice president Affirm sales in the web post. . “Offering Affirm’s alternative to credit cards also gives Amazon consumers more payment choices and flexibility. “
Affirm credit options are available for purchases at Walmart, Peloton, Ring, Pottery Barn, Adidas and Neiman Marcus, among other retailers and merchants, according to the Affirm website.
A spokesperson for Affirm declined to comment on the specific credit terms that will be available to Amazon customers. In providing retail loans to consumers, Affirm has in the past offered various loan terms, including maturities ranging from one to 60 months, depending on a recent Regulatory Quarterly Affirmation deposit.
For the nine months ended March 31, Affirm reported net income of $ 608.7 million, including income from its merchant and virtual card networks as well as interest income and gains on the sale of its loans, according to the record.
Just as the number of fintech companies, like Affirm, are offering more and more credit alternatives, consumer satisfaction with traditional card companies is declining, according to one. recent JD Power survey.
Assert stock swept the news of its new partnership with Amazon, America’s largest e-commerce company.
Affirm and Amazon spokespersons declined to be more specific on when Affirm credit options might be more widely available to Amazon customers.